Are house prices really going down?

Cat695

EdInvestor wrote: »

Anyone selling a property at the 300k level outside London will not be expecting to deal with FTBs. Other people don't have problems getting mortgages, so there is likely a much reduced need to drop the price, if any.

The OP should aim at entry level properties if s/he wants a discount.

I fear however we are still dealing with over inflated expectations.

Its the higher prices properties that are taking the biggest hit.....or do "other people" not find the recession a problem

beautifulgorgeous_2

You cannot assume a blanket 10 or 15% reduction on every house. Some will have been priced more realistically and others could be up for double their worth. Anything is only worth what someone can/will pay. We are completing on a house today which "ticked every box" except price. The seller would not negotiate but we have paid the price and it will be a home first and an investment second. It was still 5% less than it sold for in spring 2005 so not too bad!

carolt

EdInvestor wrote: »

Anyone selling a property at the 300k level outside London will not be expecting to deal with FTBs. Other people don't have problems getting mortgages, so there is likely a much reduced need to drop the price, if any.

The OP should aim at entry level properties if s/he wants a discount.

I fear however we are still dealing with over inflated expectations.

Agreed - on both sides.

However - nothing ventured, nothing gained - again, on both sides. Presumably, some owners decide to test the market and put their homes on for more than they think they will get, just in case they get lucky. Likewise, some buyers try asking for substantially less than asking price, in case they get lucky.

There's no point blaming either side - they're both just trying to make/save the most money they can.

Who will prove 'right'? Overall, in a falling market, patient buyers will, but obviously some individual properties will buck the trend.

Personally, I'm not looking at the moment, but if I was, I'd ask for big discounts - why wouldn't I

Cat695

beautifulgorgeous wrote: »

You cannot assume a blanket 10 or 15% reduction on every house. Some will have been priced more realistically and others could be up for double their worth. Anything is only worth what someone can/will pay. We are completing on a house today which "ticked every box" except price. The seller would not negotiate but we have paid the price and it will be a home first and an investment second. It was still 5% less than it sold for in spring 2005 so not too bad!

But what I see the problem is those that are keeping their prices unrealistic are causing problems to those that have priced with drops in mind

Most buyers now after seeing the news etc will expect a drop on any price they see....whether priced correctly or not

kennyboy66_2

Cat695 wrote: »

Its the higher prices properties that are taking the biggest hit.....or do "other people" not find the recession a problem

In absolute terms or % terms ?

Everything I have seen points to the fact that flats and new-builds are falling furthest.
This should not be much of a surprise as it was exactly the same in the last property correction / crash.

Outside or London, most people in a £300k should have at least a fair chunk of equity in it.

Cat695

kennyboy66 wrote: »

In absolute terms or % terms ?

Everything I have seen points to the fact that flats and new-builds are falling furthest.
This should not be much of a surprise as it was exactly the same in the last property correction / crash.

Outside or London, most people in a £300k should have at least a fair chunk of equity in it.

Yes I agree but when you stick a property up at 300k all people see its that house prices overall have dropped 25% (over the past year)

they won't take into the fact where they live etc etc they will just see (as in the paper on the news) house prices have dropped by so much % and expect it off....especially to get under the stamp duty

25% off 300k is alot more than 25% off 150K so bigger hit

neverdespairgirl

IveSeenTheLight wrote: »

Are there no properties under £250k?

In my neck of the woods, £250k or less gets you a studio, or a 1 bed flat above a shop on a busy road, and / or with a short lease.

WTF?_2

It's pretty simple - if you don't like the price and the buyer won't reduce then don't pay it and look for another property.

If a seller doesn't have to worry about servicing debt on their property and is determined to keep it on the market until it hits a perceived price then not much you can do but look for other properties.

The overall balance of buyers and sellers on the market will determine fair market prices but there's nothing that stops individuals from asking whatever price they like.

skap7309

kennyboy66 wrote: »

It just seems that some on here think they are doing sellers a favour by even putting an offer in & then are affronted if it is rejected.
If you are desperate to buy, why not at least go to the auctions or look at repossed properties (many of which are advertised as "the lender has recieved an offer of "£xk" and it will be accepted in 14 days time".

Clearly many sellers are not quite as desparate to sell as you wish.

I was going to thank your response.....until i got to the last line.

TBH i am not interested in buying until i reach my target deposit so until then it makes no difference to me what sellers do. However, what does concern me is the amount of properties on Rightmove changing from 'for sale' to 'for rent'. It seems alot of people are expecting to wake up tomorrow morning and find rampant HPI appear and they are in for some shock as it looks like the HPC is here to stay for some considerable time.

EdInvestor

Cat695 wrote: »

Yes I agree but when you stick a property up at 300k all people see its that house prices overall have dropped 25% (over the past year)

Oh really. Even the highest index only says around 15%, and the LR says 10%.Perhaos you are referring to new build flats in provincial city centres?

they won't take into the fact where they live etc etc they will just see (as in the paper on the news) house prices have dropped by so much % and expect it off....especially to get under the stamp duty

It's the job of the estate agent to put them wise about the local sitaution - all property is local, you will recall.

People with attitudes like yours are not doing FTBs any favours.They are already known to have unrealistic expectations, be likely to have too small a deposit, to experience down valuations and have their mortgage applications either refused or reduced because they are high risk. They also are known to gazunder at the last minute.

Nobody really wants to do business with these people. Such sales risk becoming an expensive disaster.That's why the OP is being treated with derision.